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Zara: Fast Fashion

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Zara: Fast Fashion

  1. 1. ZARA: fast fashion
  2. 2. Contents Creation of ZARA Environment Analysis ZARA’s Strateies Strategic Proposals
  3. 3. Creation of ZARA 1963-1974 Amancio Ortega Gaona founded Inditex 1975 The first zara store was opened in Spain 1976-1984 Spreading of zara store in Spain 1985 Zara started to enter the overseas market (in Portugal) 1989 Entering New York City, in USA 1990 Entering Paris, in France 1991-2004 Spreading to the whole world including Japan(1998) 2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza 
  4. 4. Creation of ZARA Inditex Chair man: Amancio Ortega Gaona Location of Headquarter: Coruña in Spain Annual profit: €94billion
  5. 5. Creation of ZARA Zara One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of Time to Marke t Date of Establishment The first retail shop was opened in 1975 Number of Stores 1440 Stores in 77 Countries Domestic Expansion(Korea) 3 Stores were opened at Coex,Lotte Department Store etc. in April30,2007(now 17) Numbers of Employees 32,000employees (20,000 are stockman)
  6. 6. Creation of ZARA
  7. 7. ZARA’s Value Chain Fast fashion A contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) to capture current trends in the market Material Team Design Team Testing Stores Production Facility Sales Network An end - customer
  8. 8. ZARA’s Environment Analysis Competitor Analysis Based on the most recent fashion trends presented at Fashion Week in both the spring and the autumn of every year, these are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price External Environment
  9. 9. Zara’s SWOT Analysis Zara’s internal analysis ZARA’s Internal Environment Analysis
  10. 10. 1.ZARA’s Core Competence [Core Competency-Tree] Vertical Systematization of Design and Production Process Recreational ablility of Fashion IT System for collecting Customer Information Real estate Products meeting the demand for fast-changing and short life-cycled fasion trends Increasing Property Values & Increase asset, management Shirts, Jeans, Jacket One-piece, Skirts, Jacket Bags, Belts, Perfumes Stores
  11. 11. 2.Assessment for ZARA’s Core Competencies
  12. 12. 3.ZARA’s Core Competence Analysis[VRIO] [VRIO Framework] Valuable ? Yes
  13. 13. [VRIO Framework] 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? Yes Yes
  14. 14. [VRIO Framework] 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? Costly to Imitable? Yes Yes Yes
  15. 15. [VRIO Framework] 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? Costly to Imitable? Exploited by organization ? Yes Yes Yes Yes
  16. 16. 2 3.ZARA’s Core Competence Analysis[VRIO] Competitive implications High possibility for maintaining Competitive advantage continuously Economic Performance Above Average
  17. 17. ZARA’s Success Factors[4 Core Competencies] Utilizing Stores IT System Recreation of Fashion Vertical Systematization Of Production Process
  18. 18. ZARA’s Success Factors 5 Keys to Success 1. Utilizing shops actively 2. Short period of Collection preparation 3. The principal of small quantity production 4. Creating the value from product differentiation 5. Utilizing the advantage of geographical condition
  19. 19. Active Use of Stores <ul><li>Changing the store layout in every 2weeks </li></ul><ul><li>Located in the very center of the city </li></ul><ul><li>Using the store to advertising </li></ul><ul><li>Collecting the data of customers </li></ul>ZARA’s Success Factors
  20. 20. Short period of Collection preparation Spending only 2 weeks from The market research to the sales (Normally it takes 6 months) ZARA’s Success Factors Market Research Within 1 day Design Needs Production Closely located with HQ Transport-ation Small mass of product Customers Display Tight control of stores
  21. 21. Small Quantity Production Continuous Production of New Product, Without relying on HIT Product ZARA’s Success Factors Small Quantity Batch Production Maximizing Product Scarcity Push customers to buy their product immediately Increasing the frequency of visiting the store of customers Let customers open their wallet
  22. 22. Creating the value from product differentiation Because of the fast turnover ratio , customers are hard to find the same cloth in the street Customers enjoy the scarcity like high price product with relatively economical price New arrivals by regional groups ZARA’s Success Factors
  23. 23. Utilizing the advantage of geographical condition Hiring the spanish and the portuguese instead of people in the third world countries to utilize the advantage of geographical condition By positioning the design and production facility closely, make the fast action to the market situation possible Most of suppliers are located closely ZARA’s Success Factors
  24. 24. ZARA’s Success Factors 5 Keys to Success 1. Utilizing shops actively 2. Short period of Collection preparation 3. The principal of small quantity production 4. Creating the value from product differentiation 5. Utilizing the advantage of geographical condition Zara hits the global market
  25. 25. Weakness of Current Strategies
  26. 26. Strategic Suggestions

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